American has nearly finished repainting TWA's aircraft in AA's livery. As of June 7, 127 of 133 TWA aircraft were painted in AA's colors, with the remaining group using the AA/TWA co-branded paint scheme. The last three TWA MD-80s are in Kansas City for painting.
AirTran Airways, effective today, will pay travel agents commissions only when they book travel through the travel agent section of AirTran's web site, dropping commissions for travel booked through other distribution systems. "We believe AirTran Airways' web-based program provides travel agents with fair compensation and access to our best fares, while allowing us to manage other distribution-related expenses," Bill Howard, the airline's national sales director, said in a prepared statement. Professional travel agents will get a 5% uncapped commission.
Chile suspended the airline operating certificate of Peru's Aero Continente, saying the carrier broke too many safety rules. In the latest conflict with the Chilean government, the airline now is forbidden to fly into Chile, Reuters reports. While LanChile has fought the low-fare airline in recent years because of its scrappy tactics and haphazard operations, Aero Continente has instigated several issues in Chile to raise the ire of the government.
US Airways made significant progress this week in its negotiations with major unions, as the airline attempts to finalize sizeable labor concessions by Saturday. The Air Line Pilots Association has tentatively agreed to many of the US Airways proposals, while the Association of Flight Attendants has traded a number of counter-proposals with the carrier. Agreement appears to be more elusive with the Communications Workers of America and the International Association of Machinists.
American Trans Air on Monday became the second major airline after America West to radically restructure its business fares. Indianapolis-based ATA dramatically reduced the most lucrative fares: unrestricted walk-up and fully refundable fares. The airline also is eliminating fuel surcharges in all markets within the continental U.S.
American named Theo Panagiotoulias managing director for AA's Asia/South Pacific Region, based in Hong Kong. He has been heavily involved in the Asia/Pacific travel industry for more than 12 years and succeeds Nancy Knipp, who becomes AA's managing director for Japan. A native of Melbourne, Panagiotoulias joined AA in 1997 as manager for Southern Australia. In 1998, he was assigned to Singapore as regional manager for Southeast Asia and the Indian subcontinent.
Aerolineas Argentinas operated its first charter service from Madrid to Puerto Vallarta, Mexico, this week, said the Argentinean airline, which is controlled by Spanish-led private consortium Air Comet .
The aviation industry will have to adjust to new procedures that dispense with long discussions and extensive industry input, according to Sandy Murdock, a partner with the law firm Shaw, Pittman and former FAA chief counsel and acting FAA deputy administrator in the Reagan administration. Murdock made his comments at the Homeland Security and Defense conference held by McGraw-Hill in Washington last week.
US Airways yesterday requested authority to serve Nassau, The Bahamas, from Washington National with daily nonstops beginning in November, using Airbus A319 aircraft. It begins daily DCA-Bermuda nonstops July 7. (Docket OST-02-12481)
Alaska Airlines this week launched a program designed to boost the carrier's historically woeful on-time performance. Described as the first in several steps to tackle the problem, the STAR program -- for Start The Airline Right -- focuses on morning flight banks. "The benefits of departing our first flights on time ripple throughout the day," Alaska Director of System Operations Control Steve Cunningham told an internal Alaska publication.
DOT yesterday named federal security directors (FSDs) for three airports, including Norfolk, Va., where federal agents last week arrested 21 persons who worked or had worked at the airport. The other airports were Columbus, Ohio, and Quad Cities airport of Moline, Ill. Quad Cities' FSD Julio Garcia, most recently national human resources manager for FAA, has 28 years experience in large-organization management but, unlike most FSDs named so far, does not have a law enforcement background.
Peru is ready to consider guaranteeing a US$100 million foreign loan for Lima Airport Partners (LAP) in order to implement the next 42-month-long phase of building new facilities at Jorge Chavez International Airport. Alejandro Chang Chiang, chairman of the financial oversight agency for airport infrastructure, known as Ositran, conditioned such a guarantee on a review of certain financial, legal and operational matters contained in the concession contract. "This will not jeopardize users but pave the way for new investors," said Chiang.
Argentina's up-and-coming Southern Winds Airlines will start service this month from Buenos Aires and its base in Cordoba to Lima, Peru. On the heels of Argentina's most recent monetary devaluation, SW is rapidly expanding international operations and is already flying to Santiago, Chile. Soon it will include Montevideo, Uruguay; Porto Alegre, Brazil; and Santa Cruz, Bolivia, in its network.
SAS Scandinavian Airlines has increased its stake in regional subsidiary Wideroe from 63.3% to 96.4% by taking over the stakes of Torghatten Trafikselskap AS, Sogn og Fjordane Fylkeskommune and Nordlandsbanken ASA for US$16.5 million or 1,100 per share. SAS offered to buy the remaining shares for the same price. The offer expires on June 21. Earlier this year, the airline acquired its former rival Braathens and took a majority stake in Spanair. -JF
US Airways yesterday filed with the Air Transportation Stabilization Board (ATSB) for a $900 million federal government guarantee backing a $1 billion loan. The loan will pay for a restructuring plan aimed at helping the airline recover from $1.425 billion in September 11-related losses.
Newly relaunched no frills carrer DBA (Deutsche BA) has started a twice weekly Munich-Malaga (Spain) service for the summer season. The airline operates Boeing 737-300s on the route. EasyJet holds an option to buy DBA from British Airways until early 2003. -JF
Columbia's new government, which takes office August 7th under president-elect Alvaro Uribe, will have to decide whether he will fly on commercial airlines or renew talks to buy a Boeing 757-200 VIP transport worth about US$40 million. The president's current jet has been grounded by the country's civil aviation department.
Hainan Airlines has taken full control of debt-riddled domestic carrier Changan Airlines, acquiring another 40% stake to bring its holding to 75.2%. An official at Hainan in Haikou said Changan's network would be reduced as it has several unprofitable routes. In line with this, a reduction in the workforce is also being planned.
Irish no-frills carrier Ryanair expects traffic to grow 30%-35% annually in the next two years on the back of a still-booming European low-fare air travel market. The airline is looking at 25% annual growth in the medium- to long-term, while crediting the sharper than expected short term growth to a widening gap between its fares and those of its nearest competitor.
Boeing this month plans to start production of its first 777-300ER, and remains committed to it and its sister 777-200LR despite thin backlogs and program delays triggered by the global airline downturn, particularly on long-haul routes. The first 777-300ER will roll out sometime in November. First flight is slated for early 2003, and a second model will join the flight-test program shortly thereafter. First delivery is scheduled for March 2004, a six-month slip. The entry-into-service customer has not been announced.
